Fitch: Australia will return to robust growth in 2021

Dhwani Mehta FXStreet

Australia will return to robust growth in 2021 in lieu of sound and diverse economic fundamentals, the US-based Fitch Ratings noted in its latest review report on the economy.

Additional takeaways

“The pandemic response highlights Australia's flexibility and capacity to use fiscal policy to buffer against shocks.”

“Broad diversification of Australian industry, and flexibility, the competitiveness of the economy to support sustainable recovery over the next few years.”

“Debt burdens will climb to around 18% of GDP in the fiscal year, does not foresee a material weakening in the sovereign credit profile.”

Market reaction

The upbeat outlook on the Australian economy failed to inspire the AUD bulls, as AUD/USD holds the lower ground just above 0.7350, modestly flat so far.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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